Survival rate for firms is a 60-40 split under last administration

Discount electrical store Buy it Sell It in Victoria Street, Spalding celebrates its first anniversary with owners 'Shane and Diane Graves alongside sons Sam, Henry and Ben.  Photo by Tim Wilson.
Discount electrical store Buy it Sell It in Victoria Street, Spalding celebrates its first anniversary with owners 'Shane and Diane Graves alongside sons Sam, Henry and Ben. Photo by Tim Wilson.

More than 40 per cent of businesses started up in South Holland and the Deepings under the last Coalition Government have folded, according to a new survey.

Figures from online company service Inform Direct showed that 2,271 new businesses were set up between May 2010 and May 2015, with 1,335 of them going under and a net total of 936 new firms in the area.

Inform Direct produced figures for all 650 parliamentary constituencies, including Grantham and Stamford (of which Bourne is a part) which showed that 42 per cent of businesses formed during the Coalition’s five-year term failed to survive.

Meanwhile in Boston and Skegness, which includes Kirton, Sutterton and Swineshead, the figure rose to 43.5 per cent.

Shane Graves, who set electrical exchange store Buy It Sell It in Victoria Street, Spalding, a year ago, said: “We’ve been received quite well and we have a good, steady flow of regular customers.

“But it hasn’t been easy and there are a lot of new things that you don’t know about when you start out at the beginning.

“There are a lot of challenges that we’ve had to overcome and there have been a few sticky situation, but we’ve come through it.”

The total number of firms in South Holland and The Deepings went up from 3,237 in May 2010 to 4,173 in May 2015, a 28.9 per cent increase according to Inform Direct.

Figures for Grantham and Stamford show a 8.9 per cent rise during the same period, up from 4.114 to 4,481, while the figure for Boston and Skegness was 9.8 per cent, representing a rise from 2,593 firms in May 2010 to 2,848 in May 2015.

Simon Beardsley, chief executive of Lincolnshire Chamber of Commerce, said: “From 2010 to 2015, our Quarterly Economic Survey which takes a health check on the Lincolnshire economy has highlighted that there is continued trend of confidence for businesses across Lincolnshire.

“We’ve seen increasing business optimism across our membership and signs of continued economic confidence returning throughout Lincolnshire.

“No doubt there is still a long way to go but when we look at the bigger picture, it’s encouraging to see so many new businesses starting up and to see that business confidence is continuing to grow.”

Justin Brown, enterprise commissioner for Lincolnshire County Council, added: “Just over four in ten new businesses in Lincolnshire survive past the five-year mark which, while better than the national average of nearly one in two, still provides a challenge to make sure these fledgling businesses prosper.”